The explosion in new AI capabilities is driving a competition for greater electrical power, including nuclear power. Practical and regulatory obstacles have historically hindered investments in this field. However, the Pentagon’s Defense Innovation Unit (DIU) recently selected a new group of companies eligible to construct small, or “microreactors,” at Defense Department installations.
These potential reactors could provide military bases with reliable power in the event of a significant attack on U.S. infrastructure or during national disasters that lead to power outages. Furthermore, this initiative could lay the groundwork for a burgeoning microreactor industry with wide-ranging applications for the commercial sector. The companies selected include General Atomics Electromagnetic Systems, Kairos Power, and X-Energy, as announced by DIU last week. Andrew Higier, director of the energy portfolio at DIU, noted that while these companies are not yet under contract, their eligibility announcement marks an essential first step.
The DIU’s interest in microreactors has been longstanding, motivated by various operational needs. The increasing power demands from AI technologies have created an opportunity for the Defense Department to influence and participate in the emerging microreactor market. Higier emphasized that the AI boom has galvanized the industry, prompting private capital investments in nuclear technology. Companies like Apple, Google, and Meta are exploring nuclear-powered AI data centers.
Despite growing interest from commercial investors in micronuclear power, significant challenges remain. Questions include not only how to construct microreactors but also how to establish the industrial capacity to manufacture them rapidly and cost-effectively to meet potential demand. Additionally, regulatory navigation is essential for companies to test their microreactors safely. Higier explained that DIU and the Defense Department can facilitate this process.
DIU offers contracting capabilities that can enable scalable solutions across numerous military bases in the U.S., and possibly abroad in the future. The DIU is collaborating with various government partners, including the Department of Energy and Oak Ridge National Laboratory, to ensure safety and efficacy in reactor designs. Guidance from DIU will help companies create a manufacturing process capable of producing microreactors at the scale necessary for military needs.
Higier revealed that the Air Force and Army are searching for new power sources for multiple bases in the U.S. The project targets a modest increase in power availability, specifically in the one- to ten-megawatt range, ensuring a stable supply during potential local power disruptions. This resilience is crucial given recent warnings about increased cyberattacks against civilian power infrastructure, primarily by Chinese actors.
Ultimately, while microreactors have the potential to power U.S. bases overseas and reduce reliance on vulnerable energy supply lines, the primary goal of the current project is to guarantee stable, 24/7 operations. Higier noted a critical concern that the U.S. may struggle to manage international conflicts effectively without reliable energy sources. Jack Ryan, a senior program manager at DIU, emphasized that the real drivers of demand for resilient power solutions are base commanders who recognize energy system vulnerabilities.
